My direct mail marketing brought me this lead, a 3B1B in oak park area.
Owner is asking 100~110k, quick close as short as 10 days. I check the comps, its ARV is about 200k, however, the condition is really bad, needs almost everything. I am afraid I can't make it a rehab deal myself, however, if any one who can make it work, maybe I can make it a wholesale deal?
I took some pictures several days ago:
You're right, that price is just too tight!
Why not reopen negotiation? That house has areas that are stripped down to studs. I'd reopen negotiation and detail out all the work that needs to be done to it and quantify how much it would cost to do that work. If that seller is truly motivated they should understand how much it would cost to repair it.
If it were me, I'd:
- Quantify repair costs
- Make a SOW document that you can print and give to them (if they request it)
- Figure out what their monthly property taxes are
- Ask how how long its been vacant & how much they owe
That gives you enough information to be dangerous, I think. Use these factors, and whatever other information you gathered speaking with them, and negotiate a reduced price. The worst they can say is no. And if they scoff at your new offer, just remind them of all the factors listed above. "Its costing you $XXXX per month to keep this vacant, and you have a real offer right now. How many more months will it go vacant, and how long will it take to get someone to buy it at the price that you want? You have a real offer right now." Something like that lol.
yes show them there just isn't enough meat on the bone maybe they will see the problem that lays there. I'm a wholesaler in #roseville ca sacramentocashhousebuyer.com
Looks like there is new windows at the property. I would double check to see if this is a owner builder who is trying to rehab this himself/herself and running into some sort of issue or is this an investor. But the deal is too tight to squeeze any profit. Renegotiate the price would seem the most logical due to it present conditions. If you don't mind investing a few hundred to obtain a true home inspection report, I find it helpful and successful to present to owner (larger problems) to renegotiate a deal.
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